2011 in review

The year that was … 2011

Historic passenger and traffic growth, a new airport, bankruptcies, government bailouts, failed privatisation and a bag of corporate corruption insured 2011 to be one of the more eventful years in commercial aviation in the former Yugoslavia. Read below for the most important EX-YU aviation news of 2011 by month.

~ JANUARY ~

• New CEO for Adria Airways chosen in face of financial trouble
• New terminal plans revealed for Priština Airport
• Tunisia flights suspended due to revolution

~ FEBRUARY ~

• Skywings International based in Skopje declares bankruptcy
• Wizz Air announces flights to Skopje
• Construction of Kraljevo’s Morava Airport begins
• B&H Airlines and Jat Airways begin evacuation flights from Tripoli
• Montenegro Airlines suspends Priština and Skopje due to unpaid debt

~ MARCH ~

• Tender for the construction of Zagreb’s new terminal begins
• Jat announces return to Spain after fourteen years
• Adria Airways expands Priština base operations
• Flights to Tripoli suspended as no fly zone introduced
• Iran Air begins refuelling stops at Belgrade Airport
• Wizz Air opens Belgrade base

~ APRIL ~

• Banja Luka Airport faces closure
• Montenegrin government bails out national carrier
• Overhaul of Ohrid Airport completed
• Chicago - Zagreb - Belgrade flights announced for summer months
• Air Arabia launches Tuzla flights

~ MAY ~

• Croatia Airlines turns twenty
• Ten companies in Zagreb terminal bid
• Montenegro Airlines orders new jet
• B&H Airlines suspends Vienna and Frankfurt flights
• Eagle flies into Montenegro Airlines Fokker nose cone

~ JUNE ~

• Adria celebrates fifty years
• Adria requests 50 million Euro bailout
• Jat Airways resumes Dubrovnik service after two decades
• Chicago - Zagreb - Belgrade flights cancelled hours before inauguration
• Croatia Airlines launches Belgrade service

~ JULY ~

• Mat Airways ceases operations
• Record year for Croatia Airlines
• Construction begins on new Priština Airport terminal
• B&H suspends Stockholm and Gothenburg

~ AUGUST ~

• The tender to find a partner for Serbia’s “new Jat” begins
• Flydubai announces Belgrade flights

~ SEPTEMBER ~

• A new era for Skopje Airport as new terminal opens
• Adria announces network suspensions
• B&H Airlines launches Pescara flights
• airBaltic expresses interest for the “new Jat”
• Croatia Airlines and Adria join forces
• Adria saved from bankruptcy

~ OCTOBER ~

• First flight to Kraljevo Airport
• New Maribor based airline Golden Air launches flights
• EX-YU aviation news reveals party politics at Jat Airways
• Golden Air grounded
• Dubrovnik Airline grounded
• Baltic Aviation System buys Jat tender documents

~ NOVEMBER ~

• Family rules at Montenegro’s airports
• Qatar Airways announces Zagreb flights in 2012
• Jat Airways announces Croatia expansion in 2012
• Qatar Airways announces Belgrade flights in 2012
• US blocks Adria jet sale to Iran

~ DECEMBER ~

• Baltic Aviation System looses Jat interest
• Single offer for Zagreb’s new terminal
• Record year for Tivat Airport
• Belgrade Airport tops three million passengers
• Belgrade Airport expansion begins

With 370.000 visits in 2011 and 365 news items, thank you for visiting, reading, contributing and interacting with EX-YU aviation news.
See you in 2012!

B&H to launch Mostar flights

Sarajevo - Mostar in 2012

B&H Airlines plans to launch flights from Mostar to Sarajevo next year in hope of attracting transit passengers through the Bosnian capital. It has been proposed for the flights from Mostar to depart early in the mornings in order to connect on to B&H’s European network. The flights from Sarajevo to Mostar would leave in the evening hours, with the service to be operated by an ATR72. B&H has requested an exemption from fees at Mostar Airport during its first year of operations and has asked for the flights to be partially subsidised by the Mostar city authorities.

B&H operated flights from Mostar to Pescara in Italy for several weeks over the summer, which proved popular with tourists. The airline is mulling over plans to launch services to Rome next year. B&H Airlines will handle similar passenger numbers as last year. Despite a promising start to the year, with a strong passenger surge recorded, numbers were severely hit in the past few months after the airline’s destination network was significantly cut. On the other hand, Mostar Airport handled 35.329 passengers by the end of November, an increase of 98%.

Impressive growth for Macedonian airports

Numbers up as airline subsidies are approved for next year

Skopje is enjoying a significant increase in the number of passengers since it opened the doors to its new terminal in September. Last month, Macedonia’s main hub welcomed 56.180 passengers, an increase of 17.1% compared to the same month last year. The strong growth was followed up by an increase in the number of flights being operated to Alexander the Great Airport, up 15.4% on November 2010. Ohrid Airport, on the other hand, welcomed 1.332 passengers. Combined, the two handled 57.512 passengers, up from 50.541 passengers last November.

So far this year, Skopje and Ohrid airports have handled a combined total of 765.309 passengers. Therefore, they have already exceeded 2010s end of year result when they saw 756.088 passengers through their doors. In recent years the two airports have recorded rapid passenger growth, despite the demise of Macedonia’s national carrier MAT Macedonian Airlines.

Meanwhile, the Macedonian government has approved plans to attract new airlines by offering subsidies of up to five million Euros within the next three years. The choice of airlines that will receive the financial support will depend on several criteria such as frequencies, number of destinations as well as projected passenger numbers. A total of 1.4 million Euros in subsidies will be offered next year, increasing to 1.5 in 2013 and 2.2 million in 2014. Macedonia is currently served by two scheduled low cost airlines: Wizz Air and Pegasus Airlines.

Adria hit by passenger slump

November numbers down at Adria, on the up at Croatia Airlines

Adria Airways has faced the full brunt of its network suspensions in November as the Slovenian carrier handled 60.300 passengers, down 9.5% compared to the same period last year. The average cabin load factor was also under par standing at 57.9%. The figures were to be expected since the number of flights operated by Adria in November decreased almost 8%. So far this year the carrier has handled approximately 1.098.538 passengers, which is just under last year’s result for the same period. Adria will have a tough ask to exceed last year’s annual result when it welcomed 1.170.235 passengers.

Meanwhile, in November, Croatia Airlines carried 112.100 passengers, an increase of 6% compared to last year. From January until the end of November, the Croatian carrier welcomed 1.708.355 passengers. It is on course to surpass its 2008 end of year record when it saw 1.8 million passengers. This November, its cabin load factor stood at 67%.

As was previously reported, Jat carried 77.751 passengers in November, leading to a total of 1.141.476 passengers for the year. As a result, until the end of November, when passenger figures from all of the national carriers of the former Yugoslavia are combined, they carried a total of just over four million passengers.

Four million Euros for Banja Luka flights

Sly Srpska left in the cold in favour of Jat

The government of the entity of Repubilka Srpska in Bosnia and Herzegovina will pay Jat Airways four million Euros over the upcoming 2012 summer season to operate flights from Banja Luka to Belgrade and Vienna. Sky Srpska, the Banja Luka based airline which is still without aircraft of its own, is unhappy with the deal as it means it will not get its own jet until at least the 2012/2013 winter season. “We are very surprised. We nominated Sky Srpska to operate the flights from Banja Luka and now we hear that Jat will operate the service”, Zoran Injac, Sky Srpska’s CEO, said. “It’s completely irrational”, he adds.

The government on the other hand says its agreement with Jat is a done deal. “We have a few technical details to sort out. We need to obtain all necessary licenses from the Civil Aviation Authorities of Serbia and Austria”, the Minister for Traffic and Infrastructure, Nenad Čubrilović, says. He notes that 8 million Convertible Bosnian Marks (just over 4 million Euros) will be provided in subsidies for the service. Although flight details haven’t been revealed yet sources close to the airline say it has been suggested for the service to operate two to three times per week with an ATR72. The additional flights could impact Jat’s plans to launch flights to Pula and Split in the summer of 2012.

Despite a helpless Sky Srpska, it is believed the government concluded that it would cost less to subsidise the flights from Belgrade instead of having to pay not only for an aircraft lease or purchase but also for air crew and other staff in what is still a very small market. During the year, the government of Repubilka Srpska subsidised Adria Airways’ flight from Ljubljana which saw only an average of five passengers per flight. Once the subsidies dried out, Adria suspended the service.

Montenegro Airlines pilots plea for help

Tempers flare at Montenegro Airlines

Montenegro Airlines pilots have issued a public plea to the Government of Montenegro to save the embattled national carrier from “imminent collapse”. The airline’s pilots have requested an audience with the Montenegrin Prime Minister Igor Lukšić as “the company finds itself in a difficult financial state due to incompetent management”. Pilots say that they are just starting to receive their August salaries, meaning that they haven’t been paid for three full months of work. Some are also receiving lower salaries than outlined in their contracts. The Montenegrin judiciary has warned the airline against such actions.

Montenegro Airlines CEO, Zoran Djurišić, who has been at the helm of the company since its creation in 1994, hit back at the pilots saying that the airline’s financial woes are a result of the unstable economic climate across the globe. He adds that “a group of pilots have been creating a negative working environment within the airline for the past year and a half”. Djurišić claims that Montenegro Airlines is one of the most successful airlines in Europe and that its losses are less than those of its rivals Adria Airways, Croatia Airlines and Austrian. Meanwhile, a group of Montenegro Airlines’ most experienced pilots are staying loyal to their employer saying that they are proud to work for such an airline and are satisfied with their wages. On average, a pilot at Montenegro Airlines earns 4.500 Euros per month, according to the company.

Montenegro Airlines, which keeps most of its business operations a closely guarded secret, was forced to suspend flights to Priština and Skopje due to unpaid fees earlier in the year. The Montenegrin government has written off over 3 million Euros worth of the carrier’s debt and issued state guarantees for a 9.6 million Euro loan. It recently announced that it will restructure the flag carrier in order to return it to profitability. Montenegro Airlines said, several months ago, that it should carry 600.000 passengers by the end of 2011, a 5% decrease compared to last year.

~ MERRY CHRISTMAS ~

Ljubljana, Slovenia

Wishing all readers a Merry Christmas

~
Sretan Božić
Vesel Božič
~

Best wishes
EX-YU aviation news

Dubrovnik, Croatia

Growth slows at Croatian airports

Passenger plunge at Dubrovnik Airport

Despite a record breaking year for most Croatian airports, growth somewhat slowed in November compared to the same month last year. The number of passengers using Croatia’s main airports decreased by half of a percent compared to the same month last year.

Zagreb Airport, which launched a new look website earlier this week, continued to report positive figures by handling 156.755 passengers, up 3.2%. Overall, growth this year has amounted to 8% with 2.083.366 passengers passing through its doors. In November, Zagreb was joined by Split, Rijeka and Mali Lošinj as the other airports also to record growth. In Rijeka it amounted to 753% with the airport handling 111 passengers (up from 13 last year), while growth at Mali Lošinj reached 304% with 97 passenger welcomed.

On the other hand, Dubrovnik saw disappointing results. The coastal airport handled 26.007 passengers, down 20.3% on last year. Numbers were also down in Pula which saw only 1.051 passengers.

Below you can review the performance of Croatia’s airports in November 2011. Overall, Croatian airports handled 212.410 passengers, a decrease of 0.5% compared to November 2010. The statistics have been provided by the Croatian Bureau of Statistics.

Airport	Passengers NOV 2011	Passengers NOV 2010	Change (%)
Zagreb	156.755	151.908	▲ 3.2
Dubrovnik	26.007	32.626	▼ 20.3
Pula	1.051	1.201	▼ 12.5
Split	26.666	25.905	▲ 2.9
Zadar	1.657	1.672	▼ 0.9
Osijek	66	130	▼ 49.2
Rijeka	111	13	▲ 753.9
Mali Lošinj	97	24	▲ 304.2

New flights to Croatia and Priština

Soon in Dubrovnik

S7 Airlines and Malmo Aviation have announced flights to the Croatian coast next summer, while Belle Air Europe will be launching another destination from Priština, thus strengthening its base.

The number of Russian tourists visiting Croatia has sharply increased over the past few years and Russian carriers are looking to cash in. S7 Airlines has announced that it will launch flights from Moscow Domodedovo Airport to Dubrovnik from June 7, with a one weekly flight. The service will compete against Aeroflot which will operate daily flights to Dubrovnik (up from three weekly this year) from June 1, although services originate from its base at Moscow’s Sheremetyevo Airport. Furthermore, S7 will resume flights from Moscow to Split, which were launched during the 2011 summer season, with an added weekly service, totalling to two per week. Flight details for the Moscow Domodedovo - Dubrovnik flights can be found here. Meanwhile, Malmo Aviation will launch services from Billund in Denmark to Split. Flights will operate from June 23 once per week with details available here.

Belle Air Europe plans to inaugurate flights from Priština to Hannover in Germany next summer. It will be the fourteenth destination to be served by Belle Air from Priština. Flights are set to take off in late June. Belle Air is fast becoming the most dominant airline at Priština Airport. Since Belle Air (which operates flights from Priština to Switzerland) and its subsidiary Belle Air Europe are coded as separate airlines they have been recorded as the third and fourth busiest airlines operating out of Priština in 2011 respectively. However, if the two are combined they are ahead of competition with a 19% share of flights from the city, in front of Adria’s 15% and Austrian’s 12%. Several days ago the Swiss based Helvetic Airways launched services from Priština to Bern. After Germany, Switzerland is the biggest market out of Priština Airport.

Jat restructuring plan revealed

New plans envisages new aircraft and less employees

The Serbian government is preparing a restructuring plan for its national carrier to be implemented in 2012. Although the task-group working on the restructuring program has yet to decide whether the state should create a new national carrier to replace Jat or leave the airline with its current brand name, it is believed they are leaning towards the latter. “Since there was no interest earlier in the year for a strategic partner to purchase Jat, we have decided to prepare a development strategy because we believe it is important for the country to have a national airline”, the office of the Prime Minister said in a statement. The new program outlines that Jat will have 700 employees (down from the current 1.200), but adds that no one will lose their job. Instead, employees will leave by choice and will be offered bonuses and stimulus packages, which could prove worthwhile for employees who have a few years left until retirement. An attempt to forcefully sack employees several years ago ended in failure as all of those dismissed launched legal battles and were returned to work.

Fleet wise, the plan envisages the purchase of five to eight new aircraft, although Jat’s existing fleet wouldn’t be retired in the near future. Negotiations with Airbus regarding the 1998 order for 8 Airbus A319s will be resumed while cooperation with the ATR aircraft manufacturer will also begin.

Economists have heavily criticised the government over the past few months for not restructuring the airline before putting it on offer in an ambiguous international tender, which ended in failure a few months ago. Once again millions were wasted on financial and privatisation advisors, of which there was no use in the end. Meanwhile, Jat’s catering division, which was divided from the carrier several years ago, will be put up on auction tomorrow. It is the fourth time this year that a 70% stake in Jat Catering has been put up on sale as there has been no interest previously. The minimal asking price is just over 1 million Euros, significantly down on previous sale attempts. The company has 137 employees.

Numbers down at Ljubljana Airport

Passenger numbers slide as Ljubljana Airport plans for 2012

Ljubljana Jože Pučnik Airport has announced that it will see a decline in passenger numbers this year compared to 2010. As a result, Slovenia’s main airport will record a third consecutive year of sliding passenger figures. In 2010, the airport handled 1.388.651 passengers, which was down on the crisis hit 2009. During last year the airport was closed as construction work was carried out on its runway, which coincided with the closing of European airspace due to the Icelandic volcano ash cloud, all resulting in sliding passenger volumes. The airport cites Adria’s network cuts as the main reason for its underperformance this year. However, Ljubljana Airport’s problems began well before Adria’s financial troubles escalated. This entire year the airport has only seen passenger growth in the month of April.

On the other hand, the airport has managed to see an increase in profits. Due to Adria’s plan to lease part of its fleet and cut frequencies on some of its routes next summer, Ljubljana Airport expects lower traffic volumes and revenues in 2012, its report states. Still, the airport says that Adria’s decline should be substituted by foreign airlines and charter flights.

Finally, a total of 13.1 million Euros will be invested into Ljubljana Jože Pučnik Airport next year. Almost 11 million Euros will be spent on construction projects and the rest on equipment. All of the planned investments will be financed through the airport’s own means. The construction of the much anticipated new terminal is set to begin next year, with work set to be completed by 2015.

Jat offered Banja Luka flights

Banja Luka phones a friend

The beset Banja Luka Airport has offered Serbia’s Jat Airways the opportunity to launch flights from the Serbian capital Belgrade to Bosnia and Herzegovina’s second largest city. Since such flights have proved as loss making in the past, the airport has suggested for the service to continue on to Vienna, thus connecting Banja Luka with two cities. If such an offer is accepted, services would begin next summer. Jat has already announced the launch of six new routes during the 2012 summer season. Sky Srpska, based in Banja Luka, still does not have any aircraft of its own but would code share on Jat’s flights to both Belgrade and Vienna. “Our research shows that there is a need for flights to Vienna”, Zoran Injac, the CEO of Sky Srpska, said recently as he outlined the airline’s plan for 2012.

Banja Luka Airport is currently only served by four weekly B&H Airlines flights to Zurich. The Bosnian national carrier recently suspended flights from Banja Luka to Copenhagen which operated for a record two weeks. Due to its inability to attract flights and passengers, the airport has found itself in substantial financial problems. Earlier in the year it nearly lost its license to handle commercial flights.

Jat Airways has operated flights to Banja Luka on and off for several years. Services were cancelled each time due to low loads. B&H Airlines was scheduled to launch flights between Banja Luka and Vienna last winter but cancelled them in face of low interest. The airline planned two flights per week between the two cities which is the frequency reportedly being offered to the Serbian carrier, internal sources say.

Belgrade Airport expansion begins

Future look of Belgrade Airport

The expansion and overhaul of Belgrade Airport’s two terminals has begun. With the new business class lounge completed and opened for passengers to use, construction work has now begun on the refurbishment of the A (terminal one) and C (terminal two) gates. The first phase of the project, which will be completed by the summer of 2012, will see the expansion and refurbishment of the C1-2 gate as well as gates from A1 to A5. The price tag of the first phase will amount to 5.5 million Euros. Work will be carried out so as not to disturb flights and passengers. Pictured below is the area being overhauled.

Gates C3-4 and C5-6 will be expanded in the second phase. The third phase will involve the expansion of the A6 gate and onwards with the fourth and final phase seeing the construction of a completely new floor which will stretch over 4.900 square metres. Another apron will be built next to terminal two which will be able to handle four medium sized aircraft. Once the project is completed, a total of 9.900 square metres will be added and the terminal one air bridges will be replaced.

The airport will finance the project entirely through its own means with no bank loans required. It marks the biggest overhaul of the airport building since terminal two was renovated several years ago. The airport’s two terminals currently have the capacity to handle seven million passengers per year.

Last Friday, Belgrade Nikola Tesla Airport welcomed its third millionth passenger in 2011. It is the first time the airport has managed to break the three million mark since 1988. If sustained growth continues into 2012, Belgrade Airport is on course to post its best figures since opening its doors forty years ago and a place in Europe’s top 100 busiest airports list.

Good year for Priština Airport

Construction of Priština’s new terminal on schedule

By the end of October Priština Airport handled 1.212.856 passengers and is on track to improve on its 2010 end of year result when it saw 1.305.533 passengers. It is also on course to become the third busiest airport in the former Yugoslavia, after Belgrade and Zagreb, unless Dubrovnimk sees strong numbers in November and December. The airport has seen a strong increase in traffic throughout the year with Germanwings recently launching several new routes to Priština. Vienna topped the list of busiest routes to and from Priština this year followed by Istanbul, Budapest, Munich and Zurich. Ljubljana was the only city in the former Yugoslavia making it into the top ten position, at seventh place. Adria Airways remains the biggest carrier operating out of Priština followed by Austrian and Belle Air Europe. Turkish Airlines managed sixth place, British Airways ninth while Croatia Airlines settled as the eleventh busiest airline from Priština.

Meanwhile, construction work on Priština’s multi million Euro terminal is ongoing. The investment is worth 120 million Euros and will see the construction of a new terminal stretching over 42.000 square metres, a new control tower, an apron able to accommodate nine Boeing 737 jets, three air bridges, a car park for 1.750 vehicles, a new access road from the city to the airport and the widening of taxiways. A total of 150 people will work inside the new terminal, expected to open in January 2013.

Record year for Tivat Airport

Tivat Airport overtakes Sarajevo and Podgorica

For Tivat Airport 2011 is shaping up to be its busiest year on record since it opened its doors in 1971. By the end of November, Tivat welcomed 634.226 passengers, an impressive increase of up to 19.2%. The good figures come on top of a strong year for Montenegrin tourism. The airport handled a total of 4.413 flights which is up 11.5% on the same period last year. “We expect to end the year with a total of 645.000 passengers”, Tivat Airport CEO Ranko Bošković says.

With such strong figures, Tivat Airport will end the year ahead of larger airports such as Sarajevo and rival Podgorica. As a result, Tivat should take its place as the seventh busiest airport in the former Yugoslavia in 2011. On the other hand, by the end of November Podgorica Airport handled 572.272 passengers.

Montenegro Airlines was the busiest out if its hub airports this year followed by Jat Airways and the Russian charter airline Moskovia. Turkish Airlines managed fourth, while partner Star Alliance member Austrian only sixth. Belgrade continues to be the most popular destination from Montenegro in 2011, followed by Moscow in second and Vienna in third place.

Jat Tehnika in Airbus deal

Jat Tehnika to maintain Airbus jets from 2012

Jat Airways’ technical division, Jat Tehnika, will begin servicing Airbus aircraft next year. The deal between the European aircraft manufacturer and Jat Tehnika was signed on December 5. Airbus will train over 300 employees at the Belgrade based company from February 2012. At the same time, work will begin on the upgrade of “Hanger 2” at Belgrade Nikola Tesla Airport which will be used for servicing Airbus jets. As a result, Tehnika will be able to carry out line and spot maintenance on Airbus A318, A319, A320 and A321 models. The company already has existing licenses to service ATR42 and 72 models as well as Boeing jets. The maintenance of Airbus aircraft will begin in July 2012.

Jat Tehnika outlines that the deal is significant not only because it will boost business but it will also allow Jat Airways to purchase Airbus jets if it wishes to without additional costs of maintaining the aircraft outside the country. Jat Tehnika currently holds contracts with British low cost airline Jet2.com, Transaero and UTair Aviation while Jat Airways accounts for more than half of its business. Jat Tehnika, which was separated from Jat Airways in 2005, is wholly owned by the Serbian government and employs some 1.000 people.

Meanwhile, Jat Airways’ acting CEO, Vadimir Ognjenović has been promoted to the post of CEO, despite government promises that the management would be professionalised and chosen upon merit rather than party lines. Ognjenović became Jat’s acting CEO in December last year.

Free skies between US and Montenegro

Unlimited flights between United States and Montenegro made possible

The United States and Montenegro have signed an Open Skies air services agreement that will liberalise the two countries' bilateral aviation relationship. Representatives of the two governments inked the relevant documents on November 28 in Podgorica and on December 5 in Washington. The agreement allows the airlines from both countries to fly to, from and beyond the other’s territory, without restriction on how often carriers fly, the kind of aircraft they use and the prices they charge. State Department Deputy Spokesperson Mark Toner said at a daily press briefing recently, "This agreement will strengthen and expand our strong trade and tourism links to Montenegro, benefiting US and Montenegrin businesses and travellers by expanding opportunities for air services".

As a result of the Open Skies agreement, Montenegro Airlines, the only commercial carrier based in Montenegro has been granted unlimited flying rights to the United States. However, Montenegro Airlines does not have the aircraft, finances or network to support transatlantic flights at this moment. Unfortunately, the number of incoming tourists from the United States to Montenegro is still low. All of these factors suggest that there will be no flights between the Unites States and Montenegro anytime soon, although, this agreement has done away with any possible bureaucratic procedures if room for such flights opens in the future.

The latest attempt to set up flights between the United States and the former Yugoslavia failed in 2011 when a US tour operator suspended its planned services to Zagreb and Belgrade over the summer, an hour before the first passengers were supposed to board, as the designated airline was grounded by the Federal Aviation Administration. Priština Airport was the last to serve flights from the United States, several years ago from New York. In, August Macedonia and the United States signed the Open Skies agreement as well.

The big three

EX-YU’s busiest airlines count their numbers

With 2011 coming to an end, the three busiest airlines of the former Yugoslavia - Croatia Airlines, Jat Airways and Adria Airways have carried a combined total of almost 3.770.000 passengers so far this year.

With the exception of a few industrial spats with its employees, Croatia Airlines has had a good year by decreasing losses and increasing passenger numbers. By the end of October, the Croatian carrier welcomed 1.596.235 passengers onboard, an increase of 15% compared to the same period last year. Its average cabin load factor has so far this year amounted to 66%, slightly up on last year when it stood at 62%.

On the other hand, Serbia’s national carrier, Jat Airways, handled 1.141.476 passengers by the end of November, an increase of 15% compared to the same period in 2010. Its average cabin load factor currently stands at 70%, significantly up on last year when it was 60%. The airline recently revealed its latest results for November to EX-YU aviation news, as it recorded its seventeenth consecutive month of rising passenger numbers. In November, the Serbian carrier welcomed 77.751 passengers onboard, an increase of 10% despite a 14% reduction in the number of operated flights. The average cabin load factor stood at 68%, 14 points up on November 2010. Passengers using Jat’s Montenegro services increased 22%, figures for Euro-Mediterranean flights were up 7% while passengers using Jat’s charter flights doubled compared to last November.

Finally, Slovenia’s Adria Airways, which has had to deal with plenty of negative publicity in the past few months in regards to its future, has managed to serve 1.032.238 passengers by the end of October, an increase of 1% compared to last year. However, since news of Adria’s delicate financial situation began to spread a few months ago numbers took a tumble. In October alone passenger figures were down 4% compared to last year. However, with its network reductions coming into force during November, it will be a few more days before its affect on passenger numbers is revealed. So far this year, Adria’s average cabin load occupancy stands at 64%, down on 2010 when it amounted to 69%.

Single offer for Zagreb terminal

Will the French build Zagreb’s dream airport?

Despite announcements that the tender to find the concessionaire willing to build and run Zagreb’s new terminal would be terminated, the second phase of the tender process has been completed with only two out of the six original bidders making an offer, one of which has been immediately disqualified. The offers came from the consortium Flughafen Zurich & Starbag as well as Aeroports de Paris from France. However, the Swiss-Austrian consortium did not provide any necessary figures and thus its bid was rejected leaving Aeroports de Paris as the only remaining interested party. The outgoing government official talked up the tender process which has been marred by major problems from the outset. "We have successfully completed this second phase of bidding, and an expert commission will now assess the bid and propose its decision to the government", senior ministry official Tomislav Mihotić said. The commission has just over three months (100 days) to assess the bid. It reserves the right to reject the offer it finds it unfit.

Originally, ten consortiums bid for the Zagreb terminal with six making it into the second round. However, during the tender process, consortiums found out that the government had already chosen a design for the new terminal, despite not specifying so in the original tender documentation. Furthermore, the cost of the project was also reported to be too high for many of the bidders. This led the government to delay the final bidding deadline three times. Tender procedures began eight months ago.

Many have waited more than a decade for the new Zagreb terminal to advance from the planning stage and become a reality. Whether the French will be successful in doing so in 2012 remains to be seen. If they are, they will participate in a joint public private partnership with the Croatian government and run the airport for the next thirty years.

New destinations for Jat and Croatia

Croatia Airlines to Moscow, Jat to London Gatwick

The national carriers of Serbia and Croatia will be launching new destinations during the 2012 summer season.

Jat Airways will be heading to London Gatwick Airport next summer which will accompany its nine weekly flights to London’s Heathrow Airport. Plans for Jat to commence flights to London’s second largest airport were made a year ago when Wizz Air launched flights from London Luton to Belgrade Nikola Tesla Airport while British Airways suspended the London – Belgrade route, hit by increased competition. London is one of Jat’s most popular destinations with an extremely high load factor. The two weekly flights to London Gatwick will be inaugurated on March 29, according to the airline’s preliminary summer timetable. It joins Malta, Tripoli, Dubai, Split and Pula as the Serbian carrier’s new additions next summer. Flight details can be found here.

Meanwhile, Croatia Airlines is set to expand eastwards with the flag carrier finalising plans to launch flights to the Russian capital Moscow. The airline will utilise its fleet sharing agreement with Adria Airways this summer in order to launch the new route. Croatia Airlines is set to lease Adria’s Airbus A319s. Besides launching flights to Moscow, Croatia Airline is also planning to open new flights from Dubrovnik to Munich and Zadar to Paris. More new destinations in Eastern Europe are planned for the 2012 summer season.

B&H plans 2012 expansion

B&H looks to add new destinations

B&H Airlines is planning to stretch its wings in 2012. The airline’s CEO, Altan Buyukyilmaz, confirmed several weeks ago that the Bosnian carrier is looking at new markets. Recently, B&H Airlines polled passengers whether they would like to see flights to Vienna and Frankfurt resume. The airline made a surprise suspension of the flights earlier in the year. Passengers are strongly in favour of them making a comeback in the B&H network. The airline’s management has been pleased with the way B&H’s summer charters from Mostar to Pescara in Italy have performed and the airline is considering launching scheduled flights to the Italian capital Rome next summer.

B&H Airlines has a big enough fleet to operate additional new destinations. With three aircraft the airline currently flies to only five destinations, with flights to Amsterdam to resume next week. During the year the airline bid farewell to Belgrade, Frankfurt, Gothenburg, Vienna and Stockholm and temporarily suspended flights to Copenhagen and Amsterdam. After a strong start to the year, with B&H recording a significant passenger surge, numbers have considerably declined in the third quarter with the airline handling only 38.691 passengers from July through to September , a decrease of 30% compared to the same period last year. Still, the airline should just surpass 2010’s end of year result when it welcomed 138.241, although recent flight cancelations caused by foggy weather in Sarajevo might make this goal more difficult to reach.

Ryanair in Zadar expansion

Ryanair strengthens Zadar offer

Europe’s largest low cost airline, Ryanair, has announced the opening of several new seasonal routes to Zadar, thus serving the city from a total of eleven destinations in 2012. New flights to Zadar will be launched from its newest base Karlsruhe near Baden-Baden in Germany from March 28, Billund in Denmark from March 24, Marseille in France as of March 26 and East Midlands near Nottingham in the United Kingdom from July 2. Flight details can be viewed by clicking on the highlighted links.

Zadar Airport was one of Croatia’s star performers in 2010 with passenger numbers sharply increasing, primarily thanks to the Irish no frills carrier. This year the pace of growth has slowed. By the end of October Zadar handled a total of 259.952 passengers, an increase of 3% compared to the same period last year. Along with the new routes, Ryanair operates seasonal flights to Zadar from Brussels (South Charleroi), Frankfurt (Hahn), London (Stansted), Dublin, Oslo (Ryyge), Stockholm (Skavsta) and Dusseldorf (Weeze).

During the 2012 summer season Zadar will also see Lufthansa introducing flights from Berlin and Dusseldorf while Croatia Airlines will launch new flights from Zadar to Paris.

Jat resuming Tripoli and Malta flights

Jat to Tripoli and Malta soon

Jat Airways will be resuming flights to the Libyan capital Tripoli in March 2012, the first time since services were disrupted earlier in the spring due to a bombing campaign and rebellion uprising. Flights are scheduled to operate twice per week, every Monday and Thursday with a Boeing 737-300 via Malta. The return flight from Tripoli continues on directly to Belgrade, thus forming a triangle service. As a result, Malta will also stage a comeback in Jat’s 2012 summer timetable. The route was suspended simultaneously with the Tripoli flights. Tickets are already on sale. Flights commence on March 26.

Jat Airways was the last European airline togeather with Air Malta to suspend flights to Tripoli on March 17, when it maintained a one weekly service between the Serbian, Maltese and Libyan capitals. The Serbian carrier operated a total of five evacuation flights to Libya before a United Nations no fly zone was implemented across the country.

Flight details for the Belgrade - Tripoli service can be viewed here while more information regarding the Malta sector can be found here. Besides Malta and Tripoli, Jat is also launching flights to Dubai, Split and Pula next summer and will resume seasonal flights to Ohrid and Dubrovnik as well.

easyJet cancels Paris - Ljubljana flights

easyJet dumps Paris service as Ryanair confirms Ljubljana interest

easyJet has announced that it will cancel its service from Paris Charles de Gaulle Airport to Ljubljana Jože Pučnik in 2012 with the last flight scheduled to operate on March 1. The suspension will leave easyJet with flights from London Stansted to the Slovenian capital. This comes as bad news for the airport’s management which is trying to secure new services in order for it to overturn its sliding passenger trends. In October, Adria Airways suspended its flights to the French capital citing competition by easyJet as one of the reasons behind the suspension. Air France will come out as the biggest winner as it will be the only airline offering direct flights between Paris and Ljubljana. This winter easyJet is operating two weekly flights between the two cities with an extra weekly service added during the busy Christmas and New Year holiday period.

easyJet has already announced that it will also be suspending its Paris - Zagreb service from March 23. Ljubljana Airport is still hoping for the Russian airline RusLine to commence flights from Moscow. The two weekly service was originally planned to launch on September 1 but the flights never materialised. Ljubljana Airport is currently served by only six scheduled airlines.

Meanwhile, the CEO of Ryanair, Michael O’Leary, has confirmed that the airline plans to commence services to Ljubljana next year if the airport lowers its fees. “If Ljubljana Airport were to lower its taxes Ryanair would surely return to Slovenia”. The two sides are locked in talks in order for the no frills airline to launch flights to the Slovenian capital. The airport has proposed for Ryanair to operate flights out of Dusseldorf, Madrid, Oslo and London to Jože Pučnik Airport. In 2007 the no frills airline operated 3 weekly flights from London Stansted to Maribor Airport. The flights lasted 9 months before they were cancelled.

Belgrade closes in on three million

Three million mark to be surpassed soon

Belgrade Nikola Tesla Airport is expected to handle its third millionth passenger for the year next week, for the first time since 1988. In November, Belgrade Airport welcomed a total of 215.113 passengers, an increase of 17.7% compared to the same month last year. This is despite the fact that there were 142 flights less this November than last. By the end of November the airport handled a total of 2.906.949 passengers, an increase of 16%. Since opening its doors in 1962, Belgrade Airport has managed to handle over three million passengers within a year on only two occasions, in 1987 when it reached its historic record of 3.311.951 passengers and 1988 when it saw 3.277.537 people use its services.

With a gloomy economic outlook for the European continent next year, it remains to be seen how air travel will be affected. Still, Belgrade Airport has secured several new services for next year with its main customer Jat Airways launching new routes. Norwegian Air Shuttle will commence flights from Copenhagen on May 4, its third destination to Belgrade along with Oslo and Stockholm. Flight details for the new service can be viewed here. Furthermore, Qatar Airways has said it will also launch flights to the Serbian capital but no firm dates have been given. It also remains to be seen whether Wizz Air will open any new destinations from its base.

With 2011 coming to a close, Belgrade will be the busiest airport in the former Yugoslavia with Zagreb Airport, which has also recorded historic growth, firmly in second place. However, it will be a sprint to the finish line between Ljubljana and Priština as they battle for the title of third busiest airport in the EX-YU region, with Priština currently having the upper hand.

Crew rest outrage at Croatia Airlines

Less sleep, more work

Croatia Airlines pilots are outraged after their minimum rest period between return flights has been slashed from six to only three hours. “After a virtually sleepless night, pilots and other cabin crew will return to the aircraft stressed and fatigued which will compromise safety. The company has put cost cutting ahead of safety”, Andre Šarinić, the head of the pilots union at the Croatian carrier said. According to the union, the airline will only save 3.300 Euros per month on hotel accommodation for crew as a result of the new minimum rest rules.

The Croatian Civil Aviation Agency made the decision to cut crew rest hours without consulting the pilots union and without warning. Off duty pilots are expected to protest in front of the building of the Croatian Aviation Agency today. The union claims that the Agency was previously against shedding the six hour crew rest period. The European Cockpit Association which counts 38.600 members has extended its support to its Croatian colleagues.

In its defence, the Croatian Civil Aviation Agency says that the European Union allows for the minimum rest to last for only three hours. “Croatia Airlines now has equal, not greater freedom in terms of flight duties than foreign airlines operating to Croatia, which is one of the basic prerequisites for equal competition“, the Agency says.

BAS gives up on Jat

No deal for new national airline

Baltic Aviation Systems (BAS) has officially confirmed it will not join the Serbian government in the creation of a new national carrier, just over a week after its chief, Vladimir Antonov, is arrested for fraud and money laundering in London. Baltic Aviation Systems, which is a part owner of Latvia’s airBaltic, was the only airline to purchase the tender documentation. It marks the second failure to find a strategic partner for Jat Airways. During the first attempt, which took place at the start of the global financial crisis in 2008, the process also ended in failure without a single company purchasing the tender documents.

The Serbian Ministry for Infrastructure says it will now revise its plans for Jat. In a press release last Friday it said that Jat’s privatisation advisor will now decide whether a new Jat should be created or whether the Serbian carrier should be kept in its current form, although a large scale restructuring process within the company should take place. At this point the latter seems more likely. The government says a decision will be made very soon, before the end of the year.

Jat, which has recorded a 20% passenger increase this year, has already released part of its 2012 summer season timetable which will see the introduction of many new routes and big frequency increases across its network. It raises the question as to how Jat can operate all of these flights with its current fleet. Earlier in the year, the airline’s management stated that Jat will need new aircraft at the start of 2012 in order to operate normally.

Saving Montenegro Airlines

Financial boost for Montenegro Airlines

The Government of Montenegro is coming to the national carrier’s rescue but has decided not to privatise Montenegro Airlines. The government will restructure the airline before any talks of a possible future sale is on the agenda. The airline’s mounting debt owed to its hub airports Podgorica and Tivat will be indirectly written off. In return, the state owned Airports of Montenegro, which runs Podgorica and Tivat airports, will be given a certain amount of shares in the national carrier. Furthermore, the airports have been ordered to slash their taxes and fees but only to Montenegro Airlines. The flag carrier owes 7.5 million Euros in unpaid fees to its hubs.

Montenegro Airlines will be given 400.000 Euros from the state budget on a monthly basis to cover operational costs. The debt Montenegro Airlines owes to the Serbia and Montenegro Air Services Agency will be covered through compensation. The Montenegrin government will offer the Agency ownership over the three star Park Hotel in the town of Bijela on the coast. Earlier in the year the government wrote off a total of 3.2 million Euros of debt and gave state guarantees for a 9.6 million Euro loan.

In February, Montenegro Airlines was forced to suspend flights to Priština and Skopje due to unpaid fess. An attempt to sell a 30% share in the airline last year failed despite interest from other airlines. All interested parties wanted Podgorica and Tivat airports in the sale package. In 2010 Montenegro Airlines recorded a loss of 3.7 million Euros. It is keeping this year’s financial results a closely guarded secret. In 2012 the airline plans to use its recently obtained loan to buy a new aircraft, open new routes and get one of its grounded Fokkers F100 back in the air.

Jetairfly to Macedonia

Soon in Skopje and Ohrid

Belgian Jetairfly will commence flights to both Ohrid and Skopje in Macedonia from Brussels during the 2012 summer season. The route will operate as a triangle service, departing Brussels National Airport to Ohrid before returning back to the Belgian capital via Skopje. The flights will launch on May 13 and will operate twice per week with a Boeing 737. Jetairfly is aiming to attract leisure passengers heading to Ohrid but also passengers from Skopje in need of a direct link to Brussels. Macedonia is one of the rare countries in Europe not to have a direct service to the self proclaimed European capital city. Flights will operate on a seasonal summer basis until September 19. Details for the Brussels - Ohrid sector can be found here and for flights to Skopje here. No tickets will be sold for the twenty minute hop from Ohrid to Skopje.

Both of Macedonia’s airports are seeing a significant surge in passenger figures this year. In the month of October the two airports handled a combined total of 74.703 passengers, an impressive increase of 18.8% compared to the same month last year. This is in line with the strong growth the two airports have seen throughout the year. From January until the end of July the two welcomed 453.527 passengers, an increase of 13%. In 2011, Skopje handled 680.000 passengers, a figure it is certain to surpass this year.

Big setback for Zagreb terminal

New delays for Zagreb’s new terminal

The tender to find who will build and run Zagreb’s state of the art new terminal is likely to fail after four out of the six companies bidding in the process reportedly pull out. The news was reported yesterday by the Croatian press adding that that there is a strong possibility for the entire tender to be terminated. The Croatian government has constantly moved the deadline for the six consortiums in the running to finalise their bids. The deadline currently stands at December 12 with the winning bid to be chosen by March 2012. Furthermore, it is believed that the favourite bid ADC & HAS Airports (Houston Airport) has pulled out. The Croatian government originally claimed that the constant deadline delays were occurring upon the request of the bidders. It also cut down on the terminal’s capacity from the planned 5 million passengers per year to 3.5 million in the first phase of the project. As a result, the price tag of the new terminal has been slashed from 198 million Euros to 190 million.

On Sunday parliamentary elections are to take place in Croatia with the current governing parties set to be punished by voters. Reports suggest that the new government, likely to be made out of the main opposition Kukuriku coalition, will terminate the tender. Last month, Zagreb Airport employees staged industrial action unhappy, amongst other things, that the airport will be foreign run over the next thirty years by the company that builds the new terminal.

The companies thought to be in the running to construct the new terminal are: GMR Infrastructure & Flughafen Munchen (Munich Airport), ADC & HAS Airports (Houston Airport), J&P Avax & Athens International Airport, Flughafen Zurich (Zurich Airport and Turkish airport operator), Seoul Incheon International Airport and the French Riviera Airport Consortium.

Charges against former Jat CEO

Time to face the music - Srdjan Radovanović

A judicial process against the former CEO of Jat Airways, Srdjan Radovanvić, currently serving as an advisor to the national carrier despite the fact that the government found him incompetent of leading the airline, has begun after Serbia’s State Audit Institution filed complaints against him and several other managers for corruption. It is believed that during Radovanović’s leadership in 2010 several unlawful acquisitions were made without a necessary tender. Furthermore, the auditing institution accuses the former Jat Airways management of not adhering to the provisions of several laws and decrees that relate to the manner in which salaries are calculated and paid out in Serbia's public enterprises.

Srdjan Radovanović served as CEO from July 2009 to December 2010 and was the mastermind behind ideas such as a free taxi service for Jat passengers from the airport in Belgrade to their home, free health insurance and came upon the idea that Jat tickets should be sold in post offices. Furthermore, Radovanović employed for his Financial Director an individual without a university degree. Radovanović, a lawyer by profession, never previously worked in the airline industry. He is the member of the governing Democratic Party and is believed to have been nominated to the position of CEO by Dušan Petrović, the Minister for Agriculture, Trade, Forestry and Water Management, although Petrović at the time wasn’t part of the Prime Minister’s cabinet. Radovanović previously worked as the CEO of “Palanački kiseljak” - a mineral water company. Although he has never since appeared at Jat he holds the position of advisor with a healthy monthly salary.

It is unclear whether any charges have been made against Jat’s acting CEO Vladimir Ognjenović who was the deputy CEO during Radovanović’s time in office and vehemently supported Radovanović before the opportunity arose for him to replace the embattled CEO. However, Ognjenović’s reign is also believed to be coming to an end. This week, several members of the airline’s management lost their jobs as a result of a recent scandal involving a Jat pilot flying without a proper license. Svetislav Vranić, the Head of Training and the Head of Flight Operations Vladimir Banjac have been sacked. A judicial process has been launched against both.